(08-30) 15:14 PDT -- CNN bought the iPad newsmagazine Zite today, saying it is positioned to become a prime source of news for a large and growing audience.

Terms of the deal were not disclosed, but multiple outlets put the price tag at between $20 million and $25 million.

CNN said it would keep San Francisco-based Zite, which creates a personalized newsmagazine based on users' interests, as a standalone business.

KC Estenson, general manager of CNN Digital, said that personalized news is an important and fast-growing phenomenon.

"These guys have been at it for a long time, and it's a really great technology, but frankly we're just getting started in this area," Estenson said. "We were interested in this because we humbly think Zite is the best, or one of the best, in its space. And we thought that giving it investment and backing would allow them to make it even stronger and better."

Zite competes in a crowded space that also includes Flipboard, AOL's Editions, Broadfeed and News360.

Zite CEO Mark Johnson said Zite is better than its peers at learning users' interests over time, and delivering stories of interest to them.

"I think we've made some real breakthroughs," he said. "If you use the product for a long time, you see the product get really smart."